Perspectives Blog

Finding opportunity in Chinese reforms

Robert McConnaughey, Director of Global Research | June 16, 2014

…rging markets ahead of positive change where market uncertainty still exists. Chinese corporate level governance reforms may be fertile ground for undiscovered investment opportunities. The scope and pace of China’s reform will have significant influence on the global economy and should be monitored closely. I spent last week in China, meeting with corporate management teams, government officials and investors in the Chinese markets. One of my m…

Not all emerging markets are created equal

Robert McConnaughey, Director of Global Research | January 27, 2014

…ed their commodity windfall vs. those that did not. • Perhaps most importantly, countries undertaking structural reforms vs. those continuing to delay or backsliding on economic policy. Mexico is the poster child for positive economic reforms with the recent passage of fiscal reform and the watershed energy reform bill – easily the most important reforms the country has seen in decades. The Philippines and even much maligned Indonesia – with rece…

India’s new government fires investor enthusiasm

Natasha Ebtehadj, Fund Manager, Threadneedle International Limited | September 8, 2014

…l create investment opportunities not only in the domestic economy but also in sectors exposed to government-led reform. We believe the new government could enact much needed reforms to stimulate investment and unlock India’s economic potential. India’s economy has been weighed down in recent years by both political and economic problems, which have dragged growth substantially below its potential. Deterioration in the fiscal and external accoun…

Asia’s emerging markets – Room to run

Dara White, Senior Portfolio Manager | November 10, 2014

…we have a regional preference for Asia. We have long stressed the importance of countries undertaking structural reforms vs. those continuing to delay or backslide on economic policy. We are seeing strong reform momentum across the region but particularly in China, India and Indonesia. Another difference between emerging Asia and elsewhere is the depth of the stock market – even when the overall indices struggle it is still possible to find inter…

What to make of the rebound in emerging market equities

Dara White, Senior Portfolio Manager | April 14, 2014

…ities amidst pervasive pessimism as newly elected governments normally have a window to push through much needed reform. Polls in India, Indonesia and Brazil have shown pro-reform candidates (or in Brazil’s case anyone but the incumbent) gaining steam and have acted as a catalyst for these markets. In China we have seen an announcement of a mini stimulus as well as some SOE reform (Sinopec’s announcing the sale of its marketing division). As for…

What to expect from U.S. midterm elections

Robert McConnaughey, Director of Global Research | October 20, 2014

…2016 elections. One of the major issues for both parties to address between now and then is their stance on tax reform. Many observers believe that no room for compromise around tax and entitlement reform is likely before the presidential election. However, I do believe that the groundwork for discussion will begin to form and increasingly be a market focus. We noted a few weeks ago that “[w]hile there is clearly a wide political divide on key e…

Ramifications of Republican romp

Robert McConnaughey, Director of Global Research | November 10, 2014

…evice tax repeal odds have increased. Reimbursement changes might weigh on hospitals with bad debt problems. Tax reform: Corporate tax reform will soon move to the fore. The parameters are falling in place with a reduction in corporate tax rates balanced with closing of loopholes and modifying/deferring tax preference items such as R&D costs, accelerated depreciation and LIFO accounting. In addition, the likelihood of a repatriation policy (s…